Wills & beneficiaries

My father died about five years ago. The estate was rather small, maybe around, 50,000? My older brother was the administrator of the estate. I have not seen a will, I have no idea what the estate was comprised of or its value, but I did receive a check from the estate in the amount of about $18000.00. The problem is that recently, in January of 2001 some mail was delivered to me from the new owner of my father's house which reveals there is still some stock outstanding in my father's name. I find it difficult to believe that my brother was not aware of this as the adminstrator of the estate since annual dividends, form 1099-B, must have been delivered to him during the last five years since the death of my father.

Q. Is an administrator required to issue an itemized accounting to the beneficiary of the estate and its distribution?

What recourses do I have?

I don't know for sure but I suspect the value of these three stocks that remain in my father's name may be around $3000.00. My brother is 85 and in ill health. What rights do I have as a son if my brother expires before this matter is settled. He has two daughters and some grandchildren. One grandson is a vice president of a bank in Michigan and I suspect he is handling my brother'd affairs, though the grandson is not a lawyer.

What are the tax consequencs for a beneficiary on money recieved fom an estate?

I seek this information only for my own edification. I am not as interested in the money as I am in my brothers integrity and honesty. If I confront him with this information, it will be for the purpose of trying to help him and help him to learn that his handling of the estate is not good for him.

Howard L. johnson
[email protected]

Instead of getting all upset, regard this as a possble oversight by your brother, and tell him, and try to get the shares sold. It may be that the amount was so low he felt it would cost more to probate it than it was worth, or there was a lost certificate, etc.

FEB 9, 2001

DEAR HOWARD:

The administrator is not legally required to issue an itemized accounting to each beneficiary, but it's a great idea and it would have been the responsible thing to do. You can look at that final accounting by going to the county courthouse and asking for your father's probate file which will have the will and all other documents relating to the handling of the estate.

You can review the file to see if there is any mention of this particular company's stock shares or dividends. As administrator of the estate, he has full discretion on whether to sell this stock or not, and he may have decided to not sell them at that time to see if perhaps they would increase in value at some later date.

Let your brother (or his grandson) know that this matter still needs to be taken care of by having him (or the grandson), if he decides they should be sold, by contacting the stockbroker about the intention to sell, and then the proceeds will be distributed according to the terms of the will. Hopefully, he retained a copy of the papers authorizing him to be Personal Representative because he may need them to prove to the stockbroker that he is authorized (if he did not keep a copy, he can get one by going to the courthouse to make a copy from your father's probate file).

If you receive a portion of the proceeds of that stock sale as a gift, bequest, or inheritance, it is not taxable (according to IRS Publication 559--Survivors, Executors & Administrators, in the section Gifts, Insurance, & Inheritances) to you. The only thing that would be taxable would be if you received any dividends from that distribution.

SINCERELY,

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